Here it comes Pennsylvania:

[ColdWaterConch]

HARRISBURG -- Gov. Ed Rendell did something today that governors almost never do: He proposed a budget for the upcoming fiscal year that, in terms of state funding, is lower than the current state budget.

His fiscal 2009-10 proposal is for $26.6 billion, which is less than the original $28.26 billion budget for fiscal 2008-09 and is also less than the revised 2008-09 budget of $27.7 billion.

-- snip --

While there is no general tax increase, Mr. Rendell, as expected, is calling for a 10-cent per pack increase in the $1.35 cigarette tax, and wants to levy a first-time tax on cigars and smokeless tobacco. The higher cigarette tax is expected to raise just over $1 billion, up from the current $782 million. The tax increase would take effect Aug. 1.

http://www.post-gazette.com/pg/09035/946785-100.stm
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To his credit, he is cutting 100 programs and reducing 300 more programs...but given the dire condition of PA right now, it is very likely that his new "sin" tax increases will push through without much of a fight.

Between this and SCHIP, cigar smoking is gonna get really expensive. Might as well just switch exclusively to Cubans...

[tonycsmoke]

That sucks - if anybody noticed, most of the on-line retailers are from Pennsylvania. I like using them because they won't report to their state and then Pennsylvania report to my state what I bought.

[TommyBB]

Thanks CWC. Posted to CW News.

[ConMan]

[ColdWaterConch]

Proposed tax is $0.39 per 10 cigars.

[TommyBB]

It goes down to defeat, finally, after protracted legislative session and negotiations.

CW News Entry

[tonycsmoke]

I bet Cigarbid, Famous and many other retailers are rejoicing over this news.

[TommyBB]

The tax would not have applied to the big mail-order houses in Pennsylvania, only to retailers. Its passage would have killed the shops, and likely contributed to a decrease in revenue.

[ConMan]

Originally Posted by TommyBB

It goes down to defeat, finally, after protracted legislative session and negotiations.

CW News Entry

[TommyBB]

From Chris McCalla of IPCPR

October 9, 2009 - Following months of political wrangling, stonewalling, and failed negotiations, Pennsylvania State Legislature finally approved the state's operating budget. The governor signed the budget late Friday.

Despite several tobacco tax excise increases, large cigars will not be taxed at the proposed 30% excise tax rate. Large cigars by definition are those weighing three pounds or more per 1,000 cigars; this definition covers the premium handmade cigar and popular-priced, large cigar product lines.

Thank you to all IPCPR retailers and their customers for joining the fight to Protect their Liberty! In just seven days our Legislative Action Alert was operational, Action Alert users sent 782 messages to the Capitol! Additionally, 148 new subscribers joined in the fight! Thank you for your efforts and direct action.

As these fights usually prove to be long and difficult, it takes all hands on deck to ensure this kind of win. Thank you to the Cigar Association of America (CAA) and our other industry allies for their extensive lobby efforts. Additionally, thank you to the CRA for their consumer-based advocacy campaign.